#1 Describe in detail Sofar Sounds business model on a downloadable "Canvas" of nine

building blocks.

SoFar Sounds are following a volunteer-based business model that sees artists/performers

apply to play at the company’s secret gigs at secret locations. The company depends on guest

hosts who provide free venues, meaning that they only pay the performing artists a small fee, and

the permanent members of staff. The costs, therefore, are small to almost non-existent under this

business model. The model sees audiences pay the attendance fee via the company’s online

platform, but after these audiences are screened to also know who among them can pay a certain

fee and who cannot. The tickets cost between $10 and $25 for paying and non-paying attendees.

Non-paying attendees are usually the volunteer staff, band members, and friends of bands. The

costs, therefore, are minimal with this business model. Despite the low pay, artists performing at

each gig get to benefit from exposure, merchandise sales, music sales, and audience

development.

#2 Comment & analyze “how different" Sofar Sounds is from its competitors? You

could almost imagine a "side-by-side" comparison table....

SoFar Sounds volunteer-based business model sets it apart from its competitors because it

keeps the company’s costs extremely low. Staffing events with unpaid volunteers almost

exclusively and getting venues for free from hosts is an impressive difference between the

company and other companies providing live music experiences make money. Vetting guests to

determine those to come for the secret gigs ensures that only the ones paying come, not just

anyone for competitors. Having emerging artists mostly as the ones playing is different because

the company assures them of exposure, merchandise and music sales and audience development

without having to pay them high amounts of money. The secret gigs that are promises of intimate
live music experiences are a very attractive means of getting only the customers ready and

willing to pay for the experiences, especially those ones that do not enjoy the current live music

experiences in concerts, bars, clubs, and small spaces but with so many attendees.

#3 What would YOU advise Rafe to do in order to scale the business up in a

significant way? What criteria would you use to evaluate these options - POCD

Rafe can best apply the POCD framework which will help the business assess the four

most applicable interdependent factors critical for the success of this venture. Assessing the

People will help know the best parties to provide key services and the most important resources

it needs to grow. There still are massive opportunities in live shows, which is why assessing the

Opportunity is necessary. The business needs to know what more it can provide, to whom, and

whether it can grow and how fast it might do this. It will help assess its economics and who and

what might be standing in the way of business growth and success. There’s a bigger picture in

show business, therefore, SoFar has to know about the regulatory environment, demographic

trends, and factors that might be beyond the founders’ and management’s control, all

representing the Context. Finally, it should assess the Risk and Reward of applying a volunteer-

based business model in the industry because something could go wrong and to know what could

keep going right.